In Q2 2025, Applied Digital Corporation reported a substantial increase in revenue of 51% year-over-year, reaching $63.9 million. This growth was primarily driven by robust demand in its Cloud Services segment and increased capacity utilization in Data Center Hosting. However, despite this revenue growth, the company reported a net loss of $138.7 million, largely impacted by significant conversion-related losses and fair value adjustments on convertible debt. Management has emphasized its strategic positioning for future growth, particularly through its recent partnership with Macquarie Asset Management, which is anticipated to advance its high-performance computing (HPC) capacities. Looking forward, executives are optimistic about scaling operations amidst challenges in securing hyperscaler contracts, indicating a focus on operational efficiency and enhancing cash flow.